tv Closing Bell With Maria Bartiromo CNBC November 1, 2012 4:00pm-5:00pm EDT
we head to the close. the dow up 125 points on decent volume. again, the tone will be set tomorrow morning at 8:30 a.m. eastern time with the new jobs report. here's maria with the second hour of "closing bell." and 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. positive economic data sparking a nice rally today on wall street ahead of the all-important october jobs report out tomorrow morning. take a look at how we're setting out on the street tonight. the dow jones industrial average up 134 points. nasdaq composite picked up 43 points, 1.5% higher. the s&p 500 up tonight 15. of course, jobs report won't only impact wall street. it could have a big implication on the presidential election, which is now five days away. as that election draws closer, kevin logan of hsbc securities says he's growing increasingly
pessimistic about the impact of the looming fiscal cliff. he joins me with steven wood, rick santelli, and michael jones. guys, good to see you. thanks so much for joining us. steven, what's your take on the markets right now and this storm? how does it impact the economy and the markets from here? >> i think it's modestly constructive. i think we're still in the middle of the square root shaped economic recovery we've been in for over three years now. a grinding upward trend within the data. i think you saw some of the positive news. i think the chinese numbers were a little stronger than many had figured. so the global economy may not be decelerating as quickly as many had feared, but certainly earnings are going to trump a lot of investors coming into the season. i think coming into the fourth quarter, earnings are going to be critical but revenue is going to be extremely critical in an economic environment that's grindsi grinding upward. >> kevin, what about you? i know you're growing increasingly pessimistic about
the impact of the fiscal cliff. what else is becoming a drag in terms of uncertainty on in economy and the market? >> i think right now markets are too complacent about the fiscal cliff. a lot of people assume things are going to get worked out. once again, the congress will find a way to compromise and move forward on resolving the deficit problem. my feeling now is that it's not likely to be that simple. it's more likely to spill over into january. when that happens, we'll have a greater degree of uncertainty, not less. it may take longer to work this out than many people expect. indeed, president obama in an interview last week, mentioned that he thinks there will be a solution, a grand bargain, sometime in the first six months of 2013. six months. that's a long time to get this it problem straightened out. >> yeah, so, i mean, if we do get an agreement in six months, does that mean that the u.s. doesn't go into a recession? >> well, first i want to say the metaphor fiscal cliff is probably the wrong one.
you step off a cliff, that's your last step. for many politicians, the real metaphor is it's a slope. they gradually go into these tax increases and spending cuts. they feel they can turn around and walk back up the slope, retroactively reverse the changes. in that circumstance, in that scenario, it creates a lot of uncertainty for businesses and for taxpayers. what will our taxes be next year? how are we going to make some plans for our business or personal finances? it's that uncertainty that's going to, i think, have adverse effects for the economy. >> okay. that makes a lot of sense. michael jones, how do you want to invest here with all this? >> i think there are times when the market is really simple. don't fight the fed. you certainly don't want to fight the fed when they've got the ecb, the bank of japan, the people's bank of china, and virtually every other central bank on their side. you've had unprecedentedly aggressive monetary stimulus. we have open-ended commitments to continuing that stimulus. that's a tail wind that i think
investors ignore at their peril. the only things holding the market back are some uncertainties of the fiscal cliff, over what kind of terms will be imposed on spain to receive bailouts. if you resolve those uncertainties in a little bit more positive light than the prior speaker was suggesting, and i think he will, then i think you're going to take hand cou cuffs off this market and it will go higher before people on the sideline can get engaged. >> rick santelli, what do you think? you think this storm has a big exact impact on the election? what's the impact on stocks and bonds on wednesday? >> i don't know this storm will have a big impact on the election. it might make some of the data a little skid ittisskittish. the numbers that just came out were at a three-year low. i'll tell you, tomorrow's number is a biggie for a number of reasons, maria.
it's going to potentially put job creation as established by the establishment survey in the plus column for the first time since president obama's been in office. if you look at his run from february '08 to today, about 5 million jobs were lost. about 5 million jobs created. we're basically at a slight negative. tomorrow should put job creation in the positive camp. >> so what's the betting on this panel? what do we get from that jobs number tomorrow? 125,000 new jobs? what do you think, kevin? >> that's exactly our forecast. a slight uptick in the unemployment rate. there's been very little change in the last few months in the labor market situation. got a little weaker over the summer. bouncing back a bit now. we're still in a relatively slow growth trend. i agree that the fed's quantitative easing is helping move markets along. so far it hasn't had that big an impact on the economy. >> steven wood, are you in step with that number? anybody have a number than the
125,000? >> we're in that range. i think the adp number might be too strong. we'll see whether new methodology brings slight uptick. i think revisions have been critical to the unemployment number. backward looking revisions have been significant in previous numbers. we'll see how big those numbers are as well. >> all right. we'll leave it there. >> i think this number isn't going to be as significant. >> you don't? why? >> well, because we are right now at the maximum uncertainty over the fiscal cliff. you've had most businesses pulling back on all kind of investment. everyone is expecting these to continue the square root level of growth. if we can continue growing at that pace with all the uncertainty that the politicians have imposed upon us, imagine what's going to happen after those uncertainties are resolved. >> makes a lot of sense. gentlemen, thank you very much. we appreciate your insights today. see you soon. let's get to bob. what are you making of this preemployment report rally?
>> borderline heavy volume. this is the first trading day of the month. a lot of people put new money to work. dow s&p having its best day since september 13th. that's when the fed announced qe-3. look at tech stocks. intel, these stocks had a horrible month. overall, nice moves up. intel up 2.9%. that's a great day. materials and industrials, same way. all of them catching very, very nice bids. how about auto parts? our david faber reporting earlier today that advanced auto parts was hiring blackstone to look into a potential sale of the company. hurricane sandy, there's been speculation for a week on these building companies. all of them up again today. absolutely remarkable. finally, maria, talk about great
timing. guess who's going public tonight? restoration hardware. we need them. maria, it's a very, very small offering. i hear a little bit of a pop tomorrow. i'll be all over that in the morning. >> that's a great company. thanks very much, bob. appreciate it. we'll see you a little later. don't go anywhere. we're all over this big rally and much more on this busy edition of the "closing bell." stay with us. coming up, markets on the move. good economic numbers, but will it carry over if the october jobs report brings bad news? we break it all down straight ahead. plus, brewing profits. maria talks exclusively with starbucks ceo howard schultz about earnings and the effect sandy may have had on his company's supply chain. and insuring stability. aig chief robert benmosche joins maria with his thoughts on earnings, sandy's aftermath, and the treasury department's reported plans to liquidate its
welcome back. the market off to a strong start for the month of november thanks to a host of rosy economic data out today. with the jobs number due out tomorrow and the election coming up on tuesday, can the momentum keep going? my next guess says don't believe the rally. good to see you both. abigail, let me kick this off with you. you say the market will move lower from here. >> that seems more likely. when we look at the markets hfrm a technical standpoint, what you
just referred to is a sideways trend. basically wait and see. it's hard for me to see whether a jobs report tomorrow could move us out of that trend. maybe it happens if it's a sp k spectacular number. i think more than likely, we're moving toward the bottom of that trend. arguably, it's been a good market for traders. for investors, p if you think about it from the beginning of the year, we've been up 10%, down 10%, up 10%. both indexes are firmly back down in this year's sideways trend. it points to more weakness ahead until some of this uncertainty is resolved. >> a lot of uncertainty. you say investors may not be able to stomach the volatility that's to come. >> yeah, maria, as you alluded to earlier, there are a couple of trends here. as you said at the beginning, after storms, the market actually does tend to go up somewhat after these big national disasters happen.
the other trend that i'm looking at, one of the other things i like about the market, is that traders kind of, you know, admonish to not pay attention to these big, round numbers. if you look at the market behavior the last two months, dow, 13,000, s&p, 1400, nasdaq, 3,000. they've been nice support levels for the market. the third thing i'm looking at that scares me a little bit is some folks are talking about window dressing. i'm a little worried about window cleaning. i think as we go into the end of the year, traders are going to be -- investors are going to be risk aversed with all the cliffs, with all the other political risks that, kind of thin instead of going out and buying up winners, they're actually going to be selling losers, going to cash, and basically living to fight another day, locking in profits because there's going to be a lot of volatility in the market between now and the end of the year. >> for sure. abigail, you believe it's time
to raise some cash. >> i think that makes a lot of sense. i agree with everything jeff just said. this sort of uncertainty really does make the case for raising some cash here. you know, on the positive side, maybe this range is broken to the upside as this uncertainty somehow clears to the positive. then you could use that cash constructively. more than likely, you want to raise some cash for protection toward the downside of the range. then potentially we'll have a buying opportunity down there. when we have this sort of uncertainty, payroll is being one piece of that, then the elections, the fiscal cliff, i think it really makes sense to play it a little more defensively, like jeff said. also, something that's reminding me of 2007, the third and fourth quarter of 2007, we're starting to see weakness in consumer discretionary, small cap, and mid-cap. when you start to see those bull market sectors, not to mention technology sell off, i think you just want to become a little bit more cautious. not bearish.
defensive, cautious. >> yeah, you say portfolio managers are doing window dressing right now, jeff. >> they are. you can see some of it. i think it's absolutely refle reflective of what abigail just said. there's a tendency to get away from the cyclical stuff, to go towards the defensive stocks. i'm watching the vix levels here. i think there's a lot of complacency in the market, which is very dangerous. we've seen the market get to this low end. it's almost always been resulted in bad things, sell off time. again, we have all these risks coming up that i think are going to make investing a very difficult road. i would watch the volume levels. i think you're going to see people heading for the exits. >> all right. we'll leave it there. thank you very much. we appreciate it. sandy shutting down businesses throughout the northeast. how is that impacting the restaurant industry supply chain? howard schultz will be joining me next. also, the cost of sandy. bob benmosche with me next to talk about his earns, how much
welcome back. starbucks reporting earnings just moments ago. the company reporting eps results of 46 cents a share. that was a penny above expectations. revenue at $3.36 billion, which was slightly lower than the $3.8 billion analysts were looking for. we find out how they got there and what to expect in the month ahead right now with the boss joining me now from a seattle starbucks location. it's the company chairman and ceo howard schultz. good to have you on the program. welcome back. >> thank you, maria. how are you? >> you raised your dividend. you raised your guidance. characterize the quarter for us. >> as you can see, we had a record quarter, record year, highlighted by the u.s. business at 7% comps, 10% comps in asia. we're starting to see a slight improvement -- i don't want to overstate that -- in western europe and our cpg business grew
over 15% for the year. so i think when you look at the downturn that we and many other retailers experienced in q-3, this was a stunning turn around that really cast off an extraordinary year for the company. >> yeah, it sounded for sure. can you talk about the expansion plans that you have both here in the u.s. and overseas? you mentioned you don't want to overstate it, but you are seeing improvement in western europe which is interesting as well. tell us about that. >> well, we're going to open up close to 1200 new stores next year. we're going to remodel probably 2,000 stores. i would say 70 to 80% of the growth will come outside of north america. mainly in asia. we'll get to 1,000 stores toward the end of the '13 calendar year in china. a week ago at this time, i was in mumbai, india, where we opened our first of three stores. so we're in a situation right now where, you know, again, i
don't want to overstate anything given the backdrop of the economy, but the company is firing on all cylinders. we're very optimistic about the holiday season. as i said, we're beginning to see many of the things that we put in place in the u.s. business in 2008 during our own transformation beginning to take hold in western europe. it's going to be a long-term effort, but we're seeing the siti signs that give us cautious optimism. >> what about that european business and the just announced $40 million profit in 2011? but also, people are talking about a $60 million loss reported to tax authorities in the u.k., germany, and france. some are saying investors are being told one thing and the company is reporting something else. can you clarify this for us, howard? >> sure, i can. first off, i said from the very beginning when this thing was raised that starbucks and i and our cfo would be available and 100% transparent to respect the authorities. the truth of the matter is that
we have not made a profit in many of those markets. as a result of that, we have not paid income taxes. we have, however, paid significant amounts of tax over the years in europe. we feel 100% assured that we are well within the law, and we feel once we're able to tell our story, all of this will be rectified. i think the authorities will give starbucks the kind of the respect we deserve. >> okay. well, we'll keep watching on that. i know this is developing. we'll come back to that. here we are a couple of days away from the election, howard. you were very, very vocal over the last year about getting our fiscal house ensuring that our leaders actually lead, which of course many people were very disappointed in, particularly congress, on that fiscal cliff. tell me how things are today and what you expect out of the election on tuesday. >> well, i think we still have significant issues in terms of
the need for bipartisan efforts. i think in the last few days with the unfortunate situation with hurricane sandy, it's ironic that we saw fantastic leadership by both the president and governor christie. i think we saw the very best of president obama, not only leading, but leading with a deep sense of humanity. as a lifelong drremocrat, it wouldn't surprise anyone i'm voting and supporting the president. >> okay. so has it been his leadership over sandy that changed your mind? or were you always in favor of the president? >> no, no. the president always had my vote. what i wanted from the president was an ability to work closely with the republican congress to be able to get things done. i think he has shown significant leadership, the kind of stewardship of the economy in the country and world affairs he
deserves to be re-elected. as a lifelong democrat, it doesn't surprise anyone i'm supporting and voting for the president. >> let's talk about hurricane sandy for a minute. can you give us an update out this hurricane has impacted your operation and the supply changes in the area? you look at shops and restaurants in the u.s. a lot of them are closed still. >> well, first off, as a lifelong new yorker and my family is still in new york, i take all this very personally. it's just a devastating situation. i look at the photos and talk to my family, and it's just unbelievable. with regard to starbucks business, 80% of our stores have reopened. we are making deliveries. today starbucks made a $500,000 donation to both the red cross and united way. we're trying to do everything we cannot only to open up our stores but be the kind of citizen and neighbor to those people who need us most. >> so in terms of the supply chain, what are you seeing in terms of commodities and foods
available? >> well, starbucks is making deliveries. the facility that we have in york, pennsylvania, services metropolitan new york and the eastern seaboard. we're making deliveries. i think by monday we should be back in operations close to 100%. the stores were closed for a wi while. 80% are now open. we're providing a service to our customers not only by having our stores open, but by providing wi-fi and things our customers expect from us. >> the jobs report out tomorrow. the unemployment rate came as a surprise to wall street. starbucks has a program helping americans get hired. do you think the policies are doing enough to generate jobs in this country? what would you like to see changed to really move the needle on jobs? >> well, today's the one-year anniversary of our jobs initiative. we've raised $15 million, which was leveraged up to $100
million. that equated to over 5,000 jobs. to be honest, i don't think the government on both sides has done enough to stimulate the economy and really create jobs in america. i'm glad to see the number go down it, but let's face it, we still have 14 million people unemployed. certainly so many people are being left behind and we need to do more. i also am very concerned about the states in which we have 42 of the 50 states facing a budget deficit. as a result of that, we're going to see cuts in social services. these are the kind of things that i hope whoever is elected president will be able to work with both sides and finally see the bipartisan cooperation that we need to lead the country out of the situation that we're in. as i said, my vote is for the president. >> all right. we'll leave it there. howard, good to talk with you. thanks so much. >> thank you. >> see you soon. howard schultz joining us at starbucks. let's get to bertha coombs with a market flash update. >> priceline beating the street
on earn this afternoon. revenues topped expectations at $1.71 billion compared to $1.66 billion estimate. gross books up 25%. a lot of that led by international booking. linkedin also getting a pop here after earnings. the company's third quarter earnings came in at 22 cents a share. that was better than expected. revenues also better at $252 million. its raising its outlook for 2012. it's now 939 to 944 million. >> all right, bertha. thanks so much. the massive cleanup from sandy continues as insurance claims mount higher and higher. i'll be talking with the head of aig, robert benmosche, next, about sandy's potential impacts. stay with us. then, gas lines snaking down highways and around city blocks in new york and new jersey. an energy pro up next tells us how long it could last.
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giant aig came out with third quarter as a results, both earnings as well as revenue beat expectations. the stock coming under pressure in the after hours trading session. we should note these results do not include the effects of superstorm sandy. joining me now to talk about that is aig president and ceo bob benmosche. we appreciate you joining us today. >> my pleasure, maria. >> so let's first talk about the earnings results. take us behind the numbers. how would you characterize business? >> i think it's another strong quarter for aig. we've had, you know, several in a row now. all of our businesses are profitable, all contributing strong to the earnings. so we're very pleased with the results, and the fact is as i've said before, the crisis is over. the company's fundamentally very strong. very strong liquidity position and capital position for the company. we're continuing to grow into the future. >> what's your expectation for
the next quarter, bob? what will drive business? >> next quarter will be more of what you saw in this quarter. a continued -- we had some minor issues that were with brought up in this quarter where accounting areas were brought up from the past. i don't think those will reoccur. we're going to have to deal with the effects of sandy in the quarter. >> talk to us about that. obviously the results today don't include the potential losses of sandy, the property and casualty business. your biggest business. what kind of losses do you expect? >> we're not worried about the numbers right now. we're worried about our customers and employees. we're the largest commercial insurer in the country. so you would expect us to have significant losses with our customers. we're busy with loss engineers out there. our priority is to get them up and running and get them back to
business. we haven't added it up, but i can assure you we have significant amounts of cash on hand. we have plenty of liquidity. i don't think this will be a significant financial impact in terms of the strength of company. we'll see what happens. >> the analysts, of course, are trying to figure this out as well. they bring up that in the third quarter of last year because of hurricane irene, then you have the tropical storm lee, losses came to about $574 million. close to $400 million from irene alone. is it fair to say that sandy related losses will probably surpass that number? >> it's fair to say that. whatever the number is, maria, it won't be a problem for aig. that's all i can tell you. the bigger problem is the effects of businesses in lower manhattan where we're located and other insurers are located and for people who have lost their homes. that's the priority. we have to get people, you know, back to normal as quickly as possible. it's about employment and getting businesses back to work.
i think that's a priority. again, i don't know what the number will be. i believe that whatever it will turn out to be we'll be able to handle if financially without any problem whatsoever. >> sure. understood. let me turn to the remaining holdings of aig by the treasury. you say theying sell the remainder to have before 2013. we asked treasury for a commented on that. they're declining to comment on future share sales. do you still expect that the government would get fully out of aig by year end? >> i don't know what the government expects. i can only tell you that i think they have a desire to sell. i think that the markets have to be receptive to what they want to do. when they're comfortable that the markets are receptive, i believe they'll proceed. i think we're going into some choppy weather in the last couple days. i think they're looking for the right time to maximize the value for america, and they'll do that when they feel they're able to accomplish that for the country. >> we know the treasury lockup
ends on november 10th. any active discussions regarding a secondary here on this? >> we don't get involved in that. you know, we leave that entirely up to the u.s. treasury. they're the shareholder. to the extent we can be the facilitator, we would. our capital management program today is focused on our coverage ratios and some of our debt and ability to cover that payment. so we have a very specific capital management program for the next, i'd say, 12 to 18 months. we don't necessarily see where we would be involved in directly anything the treasury is doing at this point. >> sure. i was laughing when i saw the cover of "new york" magazine, bob. we have the article when you said, the fact is, we have now succeeded in getting the fed back all the money, and we're just close to getting the treasury paid back as well. you know, you outed, neither of
them have ever said "thank you." there you are on the cover of "new york" magazine. thank you, america. interesting article there. still no thank you, bob? >> one minute, maria. just a comment on that. the point is that everybody was public and castigating the people of aig. the people of aig were here. they were as much victims as anyone else. they all put their heads down and went back to work and paid america. i think while people were nubble saying derogatory things about the people of aig, since they lived up to their promises and delivered to america, i think we should not hold them responsible for cha for what happened in the beginning and recognize what happened in the end. >> absolutely. you have been leading this company with a steady hand. i know that the observers of your leadership are certainly feeling good about that. in terms of continuing to right
the ship, where are the asset sales going to come from in the future? you still got leasing on the block? tell us about potential deals in the future. >> well, we have time liquidate when it makes sense for the company. the aircraft leasing company is something we feel is noncore. we're simplifying the company, simplifying our structure. so owning 940 commercial planes is not something that fits an insurance company going forward. so we have worked hard. the company has righted itself. it's fixed a lot of its debt horizons. we're matching our debt payments to the ability to make those payments. so when the markets are recepti receptive, we hope to be able to take that company public and begin its vesture from aig. so it's noncore, but right now they're doing an excellent job of running the company. we'll wait for the markets to say it's time for us to take it
public. >> bob, real quick on these form fours that have been released on aig. several form tofours have been released today. a few officers exercising selling restricted stock, a nonmarket impact according to some. what do you say to that? to an investor who says, why am i going to buy when i see the executives selling. >> i'm not sure what specifically you're looking at. i can only tell you that from some of our executives at aig, it's part of their compensation program. it's natural they would be selling because they're getting compensation in the form of shares. i'm not sure on the items. i can't comment. >> no problem. >> one more comment. a lot of them, including myself, own a ton of aig shares. we're going to continue to. >> absolutely. bob, good to talk with you. thanks so much. >> be well, maria.
>> we have breaking news. over to you, phil. >> the october auto sales rate, 14.2 million. that's about 13,000 below what many were expecting. that's largely because of sandy. that's taking out about 300 to 400,000 because of the sales pace would be that much higher if we had not seen sandy the last three days of the month. again, the october sales rate coming in at 14.2 million. maria, back to you. >> all right, phil. thank you so much. good luck finding gasoline if you live in areas hard hit by sandy. we'll show you a very long line at a gas station in new jersey next and talk about how long gasmageddon could last. later, how will tomorrow's key jobs report move your money tomorrow? stick around. back in a moment. ♪ ♪
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... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. welcome back. it's a scene reminiscent of the 1970s. drivers waiting in lines just to fill up their gas tanks. mary thompson is here with the latest. >> as you can see, there's a police presence here at the vince lombardi stop in ridgefield, new jersey, in what
could become a trying situation. however, most of the drivers we spoke with today were showing a lot of patience and some resignation. >> it's about three hours, i think. if you have to do it, you have to do it. this is the only place where you can come and get gasoline. >> well, we've been waiting here for, what, over two hours, trying to get gas. we're working up in new york city with the flood relief trying to clean up some of the that water. we haven't made it there yet. >> so what's behind the long lines? first and foremost, a lack of electricity. gas stations without power can't pump gas. the new jersey gasoline retailers association estimates 75% of the state's stations lost power or were damaged by sandy. second stations that have gas may run out quickly because of high demand. third, many terminals storing gas and delivering it may be without power themselves. the solution for now, truck in some gas from out of state. something that should be made easier by a waiver signed by new
jersey governor chris christie. it might fprovide a little relif at pump. certainly the most relief would come if the power was turned back on. >> all right, mary. thank you so much. are we destined to sit in these long lines for the next two weeks? what's your expectation? how long does this last? >> i think maybe another week. we have to get the power restored to some of these facilities. in addition to the discreet things like gas stations lacking the power, we've got one of the refineries in the region in new jersey that's out, that they hope to start up later this week. the colonial pipeline which brings refined petroleum products from the gulf coast up to the northeast and new york, that's going to reopen tomorrow. a number of the harbor ports where gasoline and oil imports
are coming in from europe and elsewhere, those have been closed and flooded because of flooding and power losses. but on the whole, because the airports have been closed and because a lot of other people weren't driving, not just in new york and new jersey, but in the region, gasoline and other oil product demand is going to plummet. so you're going to see a lot of what's known as demand destruction in this area. that's why gas prices in the rest of the country are actually falling as demand is going down. >> but what could have been done for the gas suppliers to be better prepared for this disaster? >> well, i think there's not much you can do about the localized electric power failures. like the report said, there's a number of gas stations that have gasoline in the underground tanks. they just can't pump them out into cars because the pumps rely on electrical power. so either have some on-site generation or push the utilities
to restore service a heck of a lot faster than they have been. but secondly, there's been talking in washington, d.c. in the past about establishing federal or regional petroleum supply storage facilities, refined petroleum storage facilities. so we've got a national strategic petroleum reserve in the southeastern united states that holds crude oil. it makes a lot of sense to try and have additional federal storage areas. not of crude oil but of refined products like motor gasoline so that in the event of a tragedy like this, you've got some sort of large stocks that you can quickly bring in to market so that you don't have to truck it from very far. at the end of the day, while a lot of drivers are having a hard time dealing with the shortages, hurricane sandy didn't hit oil production facilities like hurricanes in the past, like
katrina did in the gulf of mexico. so while folks are struggling in the northeast, i definitely sympathize, the situation could have been a lot worse if it hit some of the bigger petroleum sector infrastructure systems. >> and so you said prices in some parts of the country are going down. where do you think prices go in the near future? >> well, i think in pockets of the northeast that continue to be hit with supply crunches, you're going to see price increases. but for the next several weeks, i think you're going to see ripple effects of lower prices across most parts of the country. >> i see. all right. we'll leave it there. good to have you on the program, sir. thank you so much. >> my pleasure. >> see you soon. up next, countdown the closely watched jobs report out first thing tomorrow morning. we'll give you the handicapping of it. stay with us. uh, i'm in a timeout because apparently riding the dog like it's a small horse
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welcome back. our next guest will tell us what they think will move your money in the morning. gentlemen, good to see you. thank you for joining us today. we're going to kick things off with you. 30 seconds on the clock, what do you watch for moving money tomorrow? >> we have our eye on an economy which has been crawling along for the last four years, waiting to see if it it can walk on its own. we're looking at the payroll numbers. also what multinationals are saying. the consumer products companies, integrated oils and consumers are saying about the demand. in a close election race like we have, how fast the federal government can mobilize people and equipment will be seminole in the coming election. >> we'll leave it there. ward, what do you look at tomorrow? >> i think the market will probably have less of a reaction to the employment numbers
tomorrow, than we have come to expect. for two reasons. first of all, all eyes are on the election next week, i think that's a dominating factor. second of all, i expect the employment data will give us a mixed picture. payrolls will probably grow again, about 110,000, because the economy is idling at a very low rpm level. on the other hand, the household survey, which was very robust last month, will probably reverse some of that and see the employment rates kick up to 7.9%. >> rich, over to you. 30 seconds on the clock. >> first of all, the economy, we know about the jobs numbers, look for 125,000 on foreign payroll jobs. more importantly, looking at revisions, hourly pay. looking at any hourly revisions. estimates look for 1.5% in growth. the gas lines, will ripple
effect into pennsylvania, maryland and other hard hit areas. the election. we feel the view -- if the polls come out, showing the republicans, democrats and finally, europe. don't forget europe. >> we ran out of time. let me ask you all, broadly speaking. do you think this hurricane impacts the election, and tuesday, what do you think the markets -- how do the markets react wednesday after the election. ward? >> obviously it depends on who wins. i think that is -- the way the markets are trading these days, if mitt romney wins, the market will expect a faster improvement in the economy than if barack obama is re-elected. i think that's probably the right way to look at it. >> all right. we'll leave it there. gentlemen, thank you very much, we appreciate your time tonight. we had a little bonus time there. i'm glad we got to that question. up next, my thoughts on leaders rising in the aftermath of super
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finally tonight, another observation on leadership. it's been a topic in this segment a few times before, starbucks ceo pointed out on this program earlier today, it's ironic, and a bit sad, actually, that it's taken the destructive wake of hurricane sandy for america to finally see real leadership. from the new york stock exchange to governor's across the country. we've seen rival leaders work together for the greater good. president obama also showing leadership during this crisis, touring the most ravaged parts of new jersey with that state's republican governor chris christie. who has been a staunch critic of the president. all this coming just six days before the presidential election. so for the president this is, of course, admirable in a crisis, you put politics aside. and we applaud him for doing so. but it also begs the question, where is the leadership on this
crisis, our debt, and deficit, and it's one that could have deeper consequences and longer term. 16 trillion dollars and counting, adding more than $1 trillion in debt every year. it's a very different kind of storm, no doubt. but it is one that we can easily see coming. we know the damage it will do, and yet nothing is being done, no leadership. now, washington has a problem. sandy has proven that they actually can work together. wouldn't it be refreshing if they did so to prevent a disaster instead of only coming together after disaster strikes? that will do it for us today, before we go, take a look at the day on wall street. the market was strong today on the upside. the dow up 136 points, better than 1%. finishing near the highs of the day. volume also pretty nice, strong day in volume here at the big board. nasdaq up 43 points. and the s&p 500 tonight picking up 15 and a half points, better than